Wall Street Underwhelms as Earnings Take Center-Stage

Michael Teague |

Wall Street was lower by Wednesday’s closing bell, as recent worries about D.C. politics and Treasury spending gave way to earnings results from the recently-ended third quarter.

After yet another run of four consecutive record closes, The Standard & Poor’s 500 Index cooled off by 0.47 percent to 1,746.38, while the Dow Jones Industrial Average was 0.35 percent lower to 15,413.33, with the NASDAQ taking the biggest hit, a loss of 0.57 percent, closing at 3,907.07.

The only real success to speak of on the Dow was aerospace/defense titan Boeing (BA) , whose shares were up over 5 percent after the company reported a substantial jump in quarterly profits and raised guidance for the fourth quarter. Construction machinery producer Caterpillar Inc. (CAT) , offered up the diametrically opposite performance, however, after shares were over 6 percent off after coming up short of earnings expectations and slashing forecasts.

The S&P 500 meanwhile was pulled under by the number-six oil & gas services company FMC Technologies (FTI) , whose shares were off almost 9 percent by the close as the company missed on top and bottom  lines, despite its earnings statement showing significant year-over-year growth. The highest-volume losses were reserved for tech stocks, particularly those of semiconductor manufacturers such as Micron Technology (MU) , Broadcom Corp. (BRCM) , and Intel (INTC) . One of the few bright spots on the index was electronics firm Corning (GLW) , who ended the day 14 percent higher after releasing a strong Q3 earnings statement and announcing a joint venture with Samsung Electronics to produce LCD glass.

The NASDAQ saw the $2.17 billion REIT American Realty Capital Properties (ARCP) take the most heavily traded loss of the day, 2 percent, after announcing a merger with Cole Real Estate Investments (COLE) . The latter ended the day nearly 9 percent higher.

Semiconductors were also a big drag, however, with Cree Inc. (CREE) , Applied Materials (AMAT) , and Altera Corp. (ALTR) all ending the day on heavy losses. Diversified toy-manufacturer JAKKS Pacific, however, gained over 25 percent by the end of trading after cost-cutting measures saw the company’s Q3 earnings and revenue firmly ahead of estimates. Shares for drug manufacturer Amgen Inc. (AMGN) pared back about 0.50 percent of the previous day’s gains

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Symbol Name Price Change % Volume
GLW Corning Incorporated 26.18 1.41 5.69 13,862,771
INTC Intel Corporation 37.68 0.91 2.47 22,807,467
AMAT Applied Materials Inc. 34.13 0.38 1.13 5,152,201
AMGN Amgen Inc. 152.13 -0.59 -0.39 2,002,155
ALTR Altera Corp. n/a n/a n/a 0
BA Boeing Company (The) 160.07 2.23 1.41 2,130,703
BRCM Broadcom Corp. n/a n/a n/a 0
MU Micron Technology Inc. 22.97 1.08 4.91 22,555,903
CAT Caterpillar Inc. 96.51 2.05 2.16 3,539,727
CREE Cree Inc. 27.41 -0.08 -0.29 1,007,291
FTI FMC Technologies Inc. 34.58 1.11 3.32 2,667,370
AGXLY Agenix Ltd S/Adr n/a n/a n/a 0


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